Kingfisher has announced its acquisition of NeedHelp, one of Europe’s leading home improvement marketplaces, for a total cash consideration of €10m (£8.9m).
Guillaume de Kergariou, founder of NeedHelp, has reinvested proceeds from the sale in a 20% interest in the business, which has resulted in the home improvement retailer owning 80%.
NeedHelp is reportedly “growing rapidly”, having tripled its revenue every year since its initial launch.
Thierry Garnier, Kingfisher’s CEO, said: “To serve customers effectively today, we need to be more digital and service orientated, while leveraging our strong store assets.
“Online services marketplaces are key to the future of home improvement retail and NeedHelp is an established and fast-growing player in this arena.”
He added: “Its acquisition accelerates our digital capabilities and extends the services that we can provide our customers – two central components of our future growth strategy.
“Looking ahead, we will develop NeedHelp quickly in the UK and Poland by leveraging our extensive store network and our differentiated banners that serve both home improvers and tradespeople.”
Kergariou said: “We are delighted to be cementing our relationship with Kingfisher through this transaction.
“The additional investment and expertise that Kingfisher will bring, as well as the ability to help support its huge customer base, opens an exciting new chapter for us.”
He added: “We will continue investing in our technology, product and operational processes to drive even greater customer satisfaction.
“We are proud to support the growth of the home improvement market in Europe, through our open architecture model.”